Headline Inflation Drops to 14.33% in February 2018; 0.8% Lower Than January 2018 Rate

The Consumer Price Index (CPI) which measures
inflation increased by 14.33 percent (year-on-year) in February 2018. This
thirteenth consecutive disinflation since January 2017 is 0.8 percent points
less than the rate recorded in January 2018 (15.13) percent. Increases were
recorded in all COICOP divisions that yield the Headline Index.On a month-on-month basis, the Headline index
increased by 0.79 percent in February 2018, down by 0.01 percent points from
the rate recorded in January.The percentage change in the average composite CPI
for the twelve month period ending February 2018 over the average of the CPI
for the previous twelve month period was 15.93 percent, showing 0.29 percent
point lower from 16.22 percent recorded in January 2018.The Food Index increased by 17.59 percent
(year-on-year) in February, down by 1.33 percent points from rate recorded in
January 2018 (18.92) percent. During the month, all major food sub-indexes
increased. Price movements recorded by All Items less farm produce or Core
sub-index increased by 11.7 percent (year-on-year) in February 2018, down by
0.4 percent points from the rate recorded in January (12.10) percent.During the month, the highest increases were seen
in prices of Fuel and lubricants for personal transport equipment, Maintenance
and repair of personal transport equipment, Narcotics, Vehicle spare parts,
Passenger transport by air, Clearing, repair and hire of clothing, Hospital
services, Domestic services and household services and Glassware, tableware and
household utensils.The Urban inflation rate rose by 14.76 percent
(year-on-year) in February 2018 from 15.56 percent recorded in January, while
the Rural inflation rate also eased by 13.96 percent in February 2018 from
14.76 percent in January. On month-on-month basis, the urban index rose by 0.82
percent in February 2018, down by 0.01 from 0.83 percent recorded in January,
while the rural index also rose by 0.77 percent in February 2018, showing no
difference with the rate recorded in January.The corresponding twelve month year-on-year
average percentage change for the urban index is 16.24 percent in February
2018. This is less than 16.55 percent reported in January, while the
corresponding rural inflation rate in February 2018 is 15.64 percent compared
to 15.89 percent recorded in January.

Food Index

The Composite Food Index rose by 17.59 percent in
February 2018. The rise in the index was caused by increases in prices of Bread
and cereals, Milk, cheese and egg, Potatoes, yam and other tubers, Fish and
Vegetables, Coffee, tea and cocoa.On a month-on-month basis, the Food sub-index
increased by 0.85 percent in February 2018, down by 0.02 percent points from
0.87 percent recorded in January.The average annual rate of change of the Food
sub-index for the twelve-month period ending February 2018 over the previous
twelve month average was 19.52 percent, 0.1 percent points from the average
annual rate of change recorded in January (19.62) percent.

All Items Less Farm ProduceThe ‘’All Items less Farm Produce’’ or Core
inflation, which excludes the prices of volatile agricultural produce is 11.7
percent in February 2018, down by 0.4 percent points from the rate recorded in
January (12.10) percent.On a month-on-month basis, the Core sub-index
increased by 0.75 percent in February 2018, this was up by 0.07 percent when
compared with 0.68 percent recorded in January.The highest increases were recorded in prices of
Fuel and lubricants for personal transport equipment, Maintenance and repair of
personal transport equipment, Narcotics, Vehicle spare parts, Passenger
transport by air, Clearing, repair and hire of clothing, Hospital services,
Domestic services and household services and Glassware, tableware and household
utensils.The average 12 month annual rate of change of the
index was 12.67 percent for the twelve-month period ending February 2018; this
is 0.34 percent points lower than 13.01 percent recorded in January.State ProfilesIn analyzing price movements under
this section, note that the CPI is weighted by consumption expenditure patterns
which differ across States. Accordingly, the weight assigned to a particular
food or non-food item may differ from State to State making inter State
comparisons of consumption basket inadvisable and potentially misleadingAll Items InflationIn February 2018, all items inflation
on a year on year basis was highest in Kebbi (18.60%), Bauchi (17.68%) and Yobe
(17.65%), while Delta (11.74%), Edo (12.33%) and Kogi (12.74%) recorded the
slowest rise in headline Year on Year inflation.On a month on month basis however,
February 2018 all items inflation was highest in Kebbi (1.90%), Yobe (1.72%)
and Rivers (1.58%), while Ebonyi and Nasarawa recorded price deflation on a
month on month all item basis in February 2018

Food InflationIn February 2018, food inflation on a
year on year basis was highest in Kwara (23.52%), Yobe (22.37%)and Kebbi
(21.82%), while Bauchi (12.82%), Anambra (13.53%) and Benue (13.83%) recorded
the slowest rise in food inflation.On a month on month basis however,
February 2018 food inflation was highest in Kebbi (2.58%), Yobe (2.07%) and
Niger (1.94%), while Abuja, Ebonyi. Enugu, Kogi Nasarawa, Plateau and Taraba all
recorded food price deflation or negative inflation (general decrease in the
general price level of goods and services or a negative inflation rate) in
February 2018.Click
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